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Chinese Tire Manufacturer Enters ‘Restructuring’ Proceedings

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Tiremaker Shandong Deruibao Tire Co. Ltd. has entered “restructuring” proceedings, according to Chinese media.

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Earlier this month, Deruibao applied to its local authority, asking for the government to restructure the business, which could lead to the sale of the operation, according to China News.

Chinese media blame the company’s business problems on the U.S. tariffs, while Tyres & Accessories noted that the tiremaker’s struggles may also be due to overcapacity in the region.

Both the tariffs and overcapacity could lead to consolidation of other small and mid-size Chinese tiremakers, Tyre & Accessories said.

While a Guangrao county government spokesman reportedly stressed that Deruibao did not go bankrupt, China News quoted an unnamed source as saying that the firm may now have debts of as much as 4.7 billion yuan (approx. $754 million).

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